Risks Involved in Letting Two-Wheeler Insurance Policy Expire
Whether you already have a two-wheeler or are planning to buy one in the future, possessing an active two-wheeler insurance policy is mandatory.
It can keep you and your vehicle protected in the case of accidents or other untoward incidents like theft, calamities, and disasters.
Since bike insurance policies are only issued for a limited period of time, it is extremely crucial to renew them on time. This will ensure that you remain protected at all times.
On the other hand, letting your two-wheeler insurance policy expire, even if it is for a day, can put you at risk.
Wondering what would happen if you don’t renew your policy?
Here’s a glimpse of the kind of risks you would be putting yourself through.
Exorbitant Fines
According to the Motor Vehicles Act, 2019, two-wheelers are required to have a valid insurance policy.
Failure to comply with this directive can land you in trouble with the authorities and can lead to a hefty fine of Rs. 2,000.
In the case of repeated offences, you can even be imprisoned for up to 3 months as well.
However, renewing your bike insurance on time can help you avoid all of that.
Third-Party Liabilities
If your two-wheeler gets involved in an accident that damages a third party or their property, you will be liable to compensate for all the damages caused by you. This can put you in a precarious position financially.
If you have an expired bike insurance since you would have to pay for the damages out of your own pocket, here’s where an active two-wheeler insurance policy can help.
A bike insurance policy will cover all of the third-party liabilities arising out of an accident, providing you with a financial safety net.
Loss of Accumulated No Claim Bonus (NCB)
The No Claim Bonus (NCB) is basically a discount that an insurance service provider offers you for not raising any claims during a year.
The percentage of No Claim Bonus offered by your insurer will increase based on the number of years you don’t make any claim. The maximum NCB that you can accumulate this way is 50%.
However, you can only avail this No Claim Bonus discount if you renew your bike insurance policy on time. Failing to renew your policy before the due date can lead to a lapse in the accumulated NCB discount, which can increase the insurance premium you would have to pay. That’s not all. All those years of safe riding will have also gone in vain as well.
Higher Premium
Insurance providers can sometimes tend to provide a discount for renewing a two-wheeler insurance policy before the due date. Also, it is easier to do it as well.
On the other hand, renewing an expired bike insurance policy can lead to a higher premium quote in addition to losing out on the NCB.
That’s not all. When you renew your insurance after it expires, some insurance providers may also mandate a physical inspection of the vehicle.
And only after the physical inspection will you be granted a two-wheeler insurance policy. This can not only complicate the renewal process but can also delay it further.
No Protection from Accidents
When you get into an accident with your two-wheeler, chances are you also end up damaging your own vehicle. Getting your vehicle repaired and restored to its original condition can lead to a significant financial burden.
And when you don’t have an active comprehensive bike insurance policy, you would have to pay for the damages out of your own pocket.
No Protection from Untoward Incidents
A comprehensive two-wheeler insurance policy not only covers third-party liabilities and own damages to your vehicle as a result of an accident.
It also provides you protection from other untoward incidents such as theft of your two-wheeler and damages to it as a result of man-made or natural calamities. This is precisely why you should always make sure to renew your bike insurance on time before it expires since an expired policy won’t provide any such protection whatsoever.
Now that you know about the risks involved in letting your two-wheeler insurance expire make sure to renew it on time. This way, you get to enjoy all-around protection for you and your vehicle in an uninterrupted fashion.
That said, if you’re worried about a complicated renewal process, the Finserv MARKETS app can help. All it takes is just a few minutes to get your bike insurance renewed. That’s not all! You can also browse through the various insurance plans available for your two-wheeler and compare them through the app as well.
So, what’re you waiting for? Download the Finserv MARKETS app on your smartphone right now and get your policy renewed in no time.
